By CIOReview | Wednesday, February 19, 2025

The Australian government has secured a three-year agreement with AWS to expand cloud services and drive innovation across the public sector.

FREMONT, CA: In a bold move to accelerate its digital transformation, the Australian government has renewed and expanded its partnership with Amazon Web Services (AWS), signing a landmark three-year, whole-of-government agreement. Announced in January 2025, the deal builds upon a previous agreement signed in 2019 and extends AWS's cloud services across all levels of government, from federal to local councils. The agreement aims to enhance government capabilities, improve service delivery, and establish AWS as a key part of Australia's public sector technology infrastructure.

Under the new agreement, AWS will provide Australian government agencies access to more than 240 services, including innovative technologies such as artificial intelligence (AI), security, and quantum computing. It marks a significant step in the country's public sector digital transformation, offering greater flexibility, scalability, and efficiency in government operations. The partnership improves government cloud services' reliability, security, and value while streamlining procurement processes and reinforcing vendor accountability.

With over 140 commonwealth, state, and territory agencies already using AWS for critical services from transport and healthcare to education and tax collection, the renewed agreement will extend cloud access to all public sector entities. The collaboration seeks to ensure that governments at all levels have the tools to meet the developing needs of citizens, leveraging cloud technologies to create faster, more responsive, and citizen-centric services.

One essential focus of the agreement is enhancing cloud skills within the Australian public service. AWS has committed to building on its previous investments in upskilling public sector employees, equipping them with the expertise required to leverage the potential of AWS technologies fully. It will support the development of a digitally smart workforce and ensure that government agencies are empowered to manage their cloud environments effectively and securely.

Chris Fechner, CEO of the Digital Transformation Agency (DTA), which played a pivotal role in brokering the deal, highlighted that the new agreement will enhance the value and security of government services while driving better contract performance and increasing vendor accountability. The pre-negotiated framework will simplify procurement for individual agencies, ensuring a more streamlined and efficient process.

However, the deal has raised concerns about the potential for reduced competition, as some critics argue that such large-scale agreements could limit the opportunity for alternative cloud providers to compete. The DTA has addressed this by ensuring that agencies will still have the flexibility to engage with other providers when necessary, aiming to balance streamlined procurement and maintaining competition in the cloud services market.

AWS is enthusiastic about continuing its longstanding relationship with the Australian government. Louise Stigwood, Managing Director for AWS Public Sector in Australia and New Zealand, emphasized the role of AWS in driving technological advancements and sustainable economic growth within the country.

This expanded agreement follows AWS's growing presence in Australia's public sector. In July 2024, AWS partnered with the Australian Signals Directorate to build a Top Secret (TS) Cloud for the defense and intelligence communities. The TS Cloud will securely host Australia's most sensitive information, further solidifying AWS's position as a trusted partner for national security agencies.

The Australian government will invest at least A$2 billion over the next decade in the partnership. AWS's involvement in building the TS Cloud will drive innovation and job creation in key areas such as cybersecurity, data analytics, and cloud computing. AWS's broader A$13.2 billion investment in Australian infrastructure by 2027, the most significant tech investment in the country's history, will support the creation of 11,000 local jobs.

This strategic investment also complements AWS's ongoing commitment to Australia, having invested A$9.1 billion in Australian infrastructure since 2012. Together, these efforts are poised to reshape the future of government services in Australia, laying the foundation for a more connected, efficient, and technologically advanced public sector.